Winter heating shock looms for oil-fueled homes

Millions of US households could see their energy bills spike this winter.

The Energy Information Administration expects heating oil to average $5.26 per gallon this winter, about 34% higher than last winter. A typical household using it could spend roughly $2,115 between November and March, a 21% increase.

About 4.1 million US homes use heating oil, concentrated largely in the Northeast. 

The price surge reflects tighter global supplies
Disruptions at refineries in Russia and the Middle East, combined with weaker fuel exports from China, have pushed up the price of distillate fuels, including that of diesel and heating oil. Analysts expect prices to remain elevated into 2027.

The Energy Department recommends weatherizing homes to improve energy efficiency.

Several New England states have also released emergency funds to help households absorb soaring energy and electricity costs.

Natural gas users are in luck: winter costs are expected to fall 9% to $640. Propane costs should drop 3% to $1,246, while electricity-heated homes face a 4% increase to $1,196.

Warmer-than-usual conditions could soften the impact. The EIA expects a less-intense winter in the Northeast, potentially reducing heating-oil consumption by 9%. However, colder spells could quickly push bills higher.

There’s a political fight brewing, too. The Trump administration wants to reduce funding for the Low Income Home Energy Assistance Program, which helps low- and fixed-income households with heating and cooling bills, Axios reports.